In July, along with the broader market, stock pick hedge funds climbed modestly in July, but their positioning became more cautious as the S&P 500 sat near record highs. According to data from Goldman Sachs Prime Brokerage, the global basic long-short hedge fund returned 1.5% on an asset-weighted basis in July, increasing its annual profit to 7.8%. Managers have stacked individual stocks for the third consecutive month to ride the market’s resilient bull run, data shows. Still, the hedge fund is a net seller of technology stocks in July, and according to Goldman’s Primebook, it bought a defensive company for the third consecutive month, showing a more measured positioning towards August. Stock markets shaking in late July, reaching multiple record highs as investors cheered on the profits of companies facing higher tariffs. So far, 82% of S&P 500 companies have reported revenue exceeding analyst expectations. According to FactSet, the 10-year average average exceeds 75%, the largest percentage since the third quarter of 2021. The S&P 500 rose 2.2% in July, reaping its third consecutive month of profit, bringing its 2025 progress to 7.6%. Tech Heavy Nasdaq Composite rose 3.7% over the period. .SPX YTD MOUNTANE S&P By 500, short selling of the July concept of short-term sales hedge funds had fallen to a low level in a year, and speculation returned to Wall Street, making individual traders revive the meme stock frenzy. Retail investors have bought stock dips all year round and have paid off beautifully as the market recovered sharply to new heights after a slump in early spring. “Retail Activity Masks continued institutional attention,” said Emmanuel Cow, head of Barclays’ European Equity Strategy, in a note to his client. “Retail investors are buying stocks at full speed, but hedge funds are cutting back on long equity positions.” Systematic long-term hedge funds, also known as quantitative strategies, have similarly not accumulated fares, falling for the second straight month, showing a 2% loss in July, Goldman data showed. Up until the year, these funds are still rising by around 10%. Schonfeld Citadel, the largest fund for MultiStadel’s MultiStadel, MultiStadel, won 1.3% in July, and raised its 2025 advance to 4%, according to people familiar with returns from the company that asked to remain anonymous because the information is private. Citadel’s tactical trade fund, which combines stocks and quantitative strategies, rose 2.1% over the same period and 8.3% per year, people said. The global equity fund said it rose 3.1%, pushing its 2025 returns to 6.3%. According to others, Schonfeld Strategic Advisors’ Flagship Fund Strategic Partners soaked 0.3% in July, reducing its profits in 2025 to 5.8%. The basic equity fund won 1.4% in July and is up 7.1% this year, the person said. Citadel and Schonfeld declined to comment. – Reported by CNBC’s Michael Bloom.
